The shortage of chips costs the automotive sector a lot of money.

At the beginning of this year, the financial impact was estimated at 61 billion euros, but that amount has now risen to 110 billion dollars (more than 90 billion euros).

This is evident from an estimate by research and consultancy firm AlixPartners on Friday.

AlixPartners thinks that car manufacturers will build 3.9 million fewer vehicles this year due to the chip shortage.

Previously, a production loss of 2.2 million cars was expected.

Several major car companies have already shut down factories or production lines due to a lack of chips.

These include Ford Motor, General Motors (GM), Volkswagen, Toyota and Daimler.

Several manufacturers have already announced that production will be considerably lower this year.

Chip companies are struggling to meet the demand from the automotive industry due to the high demand for chips for laptops, smartphones and game consoles, for example.

As people work from home more and spend more free time at home because of the pandemic, the demand for chips for consumer electronics has increased significantly.

AlixPartners researchers believe that the automotive industry will face this problem for some time to come.